Thursday, 29 July, 2021, 9:35 PM
Home Business

Weekly Market Review

Dollar gains against Taka, yen on global tension

Published : Monday, 25 September, 2017 at 12:00 AM  Count : 282
Faruk Ahmed

The US dollar gained further against the Bangladesh taka and near a two-month high against Japan's yen last week after the US Federal Reserve indicated that it plans to cut stimulus and hints at interest rate rise and North Korea said it might test a hydrogen bomb over the Pacific Ocean after US President Donald Trump threatened to destroy the rogue nation.
The US dollar traded at Tk 80.77 per unit in interbank trade last week, compared to Tk 80.70 per unit, the previous week. As the dollar was stronger, so most other currencies also showed upward trends with significant gain by the British pound sterling that shot up to Tk 108.9901 from Tk 107.2180.
The euro, however, eased slightly gained points against the BDT and traded at Tk 96.0598 Thursday compared to Tk 96.5898 per unit and the Japanese yen eased to Tk 0.7198 compared to Tk 0.7326, the previous Thursday.  The inflow of US dollar was higher while dealers took catious stance regarding the UK pound sterling. But Bangladesh Bank increased supply of dollar to arrest its falling", dealers of different commercial banks said. Lower value of dollar will discourage remittance earners and push down export earnings, they noted.
In the global market, the US dollar remained volatile since last few weeks and regained its grounds last week after the US Federal Reserve indicated that it plans to cut stimulus and hints at interest rate rise. December U.S. Dollar Index futures, which tracks the greenback against six major currencies, was up 0.022 or +0.02% at 91.967 on Friday. The index was pressured early in the session after North Korea said it might test a hydrogen bomb over the Pacific Ocean after U.S. President Donald Trump threatened to destroy the rogue nation. North Korea leader Kim Jong Un also promised to make a "mentally deranged" Trump pay dearly for his comments.
The EUR/USD also closed higher, but gave back most of its early gains to finish marginally higher at 1.1947, up 0.0006 or +0.05%. Traders supported the ruro because they did not see any risk in Sunday's German elections. Most believe that Chancellor Angela Merkel would win a fourth term. The British Pound lost ground to the dollar after Moody's said it downgraded the United Kingdom's long-term issuer rating to AA2 from AA1 and changed the outlook to stable from negative. Moody's also said it downgraded the Bank of England's issuer and senior unsecured bond ratings to AA2 from AA1. The GBP/USD settled at 1.3489, down 0.0092 or -0.68% on Friday. Some of the weakness in the British Pound was fueled by British Prime Minister Theresa May after she failed to give any concrete details as to how Britain might retain preferential access to Europe's single bottom.











« PreviousNext »



Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone: PABX 223353467, 223353481-2; Online: 9513959; Advertisement: 9513663.
E-mail: [email protected], [email protected], [email protected], [email protected],   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft